China's second direct bank gets approval to open
PSBC Youhui Wanjia Bank, a wholly owned subsidiary of the Postal Savings Bank of China, received regulatory approval on Monday to open.
It will be the country's second direct bank that operates primarily online.
With registered capital of 5 billion yuan (US$780 million), the direct banking venture will be located in Shanghai.
The move comes one year after Postal Savings Bank, one of China's big six state-owned lenders, flagged its plan to launch the online bank.
PSBC said that Youhui Wanjia would be part of its in-depth structural reforms and would help its digitisation.
The China Banking and Insurance Regulatory Commission approved the establishment of China's first direct bank in January 2017 – CITIC aiBank, which was originally a joint venture between Baidu and China CITIC Bank.